Home value 318K at 2500 ft. Finish basement would make 3700. Would add how much to value?

Asked by Steve Weaver, Castle Rock, CO Fri Jul 20, 2012

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Rob Meissner, , Castle Rock, CO
Thu Dec 12, 2013
Hello. This would increase the Finished Price Per Sq. Foot. I am of the opinion that you never get back out of the sale the money that you put into finishing the basement. Is the basement a garden level, walk out or cellar? If the basement is garden level or walk-out I think you should then include the basement as finished sq. feet when calculating out list price. The quality of work should make it feel like it is above ground, meaning no short-cuts especially on finishes and fixtures!
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Audrey Will, Agent, Castle Rock, CO
Wed Nov 20, 2013
Good Question. Not knowing what quality of finish will be in the basement, I would run the simple math like this: $318,000 divided by 2,500 sq. ft. = $127.20/ sq. ft. (assuming that $318,000 is an appraised value for the home). Simple taking $127.20 x 3,700 sq. ft. would put the home @ $470,640.00. Some homes have finished basements that are actually a higher level of finish than the above grade finishes, other homes have basement finishes that are basic at best. To get the most value out of the finished basement, it should be as good or better than the above grade spaces in the home.
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David Nelson, Agent, Denver, CO
Mon Nov 4, 2013
Hello Steve. There are a number of variables that come into play here (neighborhood, quality of improvements, demographics of buyers, etc.). I was a General Contractor for 10 years before becoming a realtor. I have seen home owners finish basements and successfully add significantly more value to the home than the cost of the basement finishing. And I've seen the opposite, where only a portion of the cost of the basement finishing results in added home value. I can offer to meet with you in your home and determine the improvements that will give you the biggest "bang for your buck" prior to finishing your basement. Contact me at 303-994-5815 or kwdenverhomes@gmail.com to set up a free, no obligation in home consultation.
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Lake Bishop, Agent, Denver, CO
Mon Jan 7, 2013
While prices vary for different neighborhoods. I would agree that you need to be realistic about what appraisers are going to value it at. If you can't get it appraised it doesn't matter what it would sell for (unless they are paying cash) It has to be able to get appraised high enough.
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Frank Nuebel…, Agent, Centennial, CO
Sun Jul 22, 2012
I agree with the comments shared. The concerning part that I usually think is important to mention is to ask yourself why you want to build out the basement. Is it because you want to use it for you to enjoy and have more space with a theater area etc. Or is it because you think it can enhance the property and have a solid return on your investment. My belief is that it should be because you want to use it. If it is based on the plan to get return on investment, it is not likely and highly risky not to mention speculative that you will be able to retrieve most or all of your investment. Good luck to you on what ever you decide is best.

If you need a larger home, then now may be the time to consider looking with low interest rates and prices down, you may be able to make the leap to something you may like for the long term. If so I would be pleased to help you. http://www.searchforhomesincolorado.com/castle-rock-co-real-…
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Ed Quinn, , Los Angeles, CA
Fri Jul 20, 2012
Hi Steve,

That’s a great question. I’ve been in the business for over 30 years and have learned to let the real estate market numbers answer a lot of questions.

Here’s the best method to see how basement finishes affect the values of homes. I’ll run a market study of homes in your area that are similar in to yours, comparing the selling prices of homes with basement finishes to those without finishes. I will also go back 3 years using the same information to see how values are trending.

This method takes most of the guess work on basement finish valuation. More importantly it helps you create a budget for your basement finish that keeps your home in a marketable price range should you decide to sell.

And if you decide to finish the basement, use the same quality of finish materials that were used on the main levels of your home. A cheaply finished basement with a poor floor plan will generate no return on the investment and in many cases actually decrease the value of the home.

Please contact me with any other questions.

Sincerely,

Ed Quinn, Owner
Quinn Corp Metro Brokers
Ed@EdQuinnSite.com
303-807-7688
0 votes
Marianne Ban…, Agent, Englewood, CO
Fri Jul 20, 2012
I agree with the cost numbers below and the return on investment estimates. These are verified by ReModeling Magazine, which puts out a new survey every year. One of my go-to basement contractors advised, that to make a basement finish look good, you have to go beyond what you might normally do, so you can overcome people's preconceived ideas about basements being dark, damp, and insect ridden. Use lots of light, upgrade all your finishes, etc.
Hope that helps!

Marianne Bandy
The Bandy Team
RE/MAX Professionals - Denver, CO
"From Our Heart to Your Home"

303-746-7799 cell
http://www.BandyHomes.com
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Kirk Wodell, Agent, Centennial, CO
Fri Jul 20, 2012
Hi Steve,

Appraisers usually value a finished basement between $20 - $30/sq.ft. depending on the type of finish (high-end vs. low-end) and what type of basement it is; walk-out, garden level or full basement. You can also see what other homes with finished basements in that neighborhood sold for over the past 3 months to give you an idea.

Take care,

Kirk Wodell
The Wodell Group - Keller Williams Realty
303-246-1132
0 votes
Sean Dougher…, Agent, Fort Collins, CO
Fri Jul 20, 2012
There are so many variables that I couldn't give you an actual value. You will need to factor in the finish work, style, and design of the basement. A good rule of thumb is that the cost will be about $25 - 30/square foot, plus $4,000 - 7,500 for a bathroom, and that you will be able to recoup about 65% - 75% of what you put into it for resale. The pricing assumes you using a contractor for all the work, it will be less if you do the work yourself (if you're qualified).

Best of luck, and I would recommend you bringing your Realtor into your home to take a look and give you some idea of what the costs and returns will be.
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